Friday, 19 October 2012

Advertising will fail for three reasons:

There are three problems with advertising in any form, whether broadcast or


Consumers do not trust advertising.

Dan Ariely has demonstrated that messages attributed to a commercial source have much lower

credibility and much lower impact on the perception of product quality than the same message

attributed to a rating service. Forrester Research has completed studies that show that

advertising and company sponsored blogs are the least-trusted source of

information on products and services, while recommendations from friends and

online reviews from customers are the highest.

Consumers do not want to view advertising. Think of watching network TV news and remember that

the commercials on all the major networks are as closely synchronized as possible.

Why? If network executives believed we all wanted to see the ads they would be staggered, so that

users could channel surf to view the ads; ads are synchronized so that users cannot

channel surf to avoid the ads. Consumers do not need advertising.

My own research suggests that consumers behave as if they

get much of their information about product offerings from the internet, through

independent professional rating sites or community content rating services like""

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